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Knowledge management has emerged as a very successful organization practice and has been
extensively treated in a large body of academic work. Surprisingly, however, organizational
economics (i.e., transaction cost economics, agency theory, team theory and property rights
theory) has played no role in the development of knowledge management. We argue that
organizational economics insights can further the theory and practice of knowledge management
in several ways. Specifically, we apply notions of contracting, team production,
complementaries, hold-up, etc. to knowledge management issues (i.e., creating and integration
knowledge, rewarding knowledge workers, etc.) , and derive refutable implications that are novel
to the knowledge management field from our discussion.